Finding Text
United States Department of Health and Human Services Federal Assistance Listing Number 93.498 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Criteria or specific requirement: Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116- 136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) and Reporting (45 CFR 75.342) The Organization is able to utilize funds to prevent, prepare for, and respond to coronavirus and COVID-19, domestically or internationally, for necessary expenses to reimburse, through grants or other mechanisms, eligible health care providers for health care related expenses or lost revenues that are attributable to coronavirus. The Organization is also required to prepare and submit period two and three provider relief fund reports to the U.S. Department of Health and Human Services (HHS). The reports are to be prepared using accurate financial information and submitted by the deadline established. Condition: The Organization incorrectly calculated and reported "Total Revenue/Net Charges from Patient Care" for period 2 and 3 reporting within the HHS PRF portal. Questioned Costs: None Context: The Organization reported $2,528,635.80 of "Total Revenue/Net Charges from Patient Care (2020 Actuals)" but should have reported $2,453,834. Additionally, the Organization reported $3,553,832.38 of "Total Revenue/Net Charges from Patient Care (2021 Actuals)" but should have reported $3,430,129.50. Effect: Quarterly lost revenues were improperly calculated and reported in the PRF portal. Cause: The Organization?s internal controls were not adequate to detect errors in calculating and reporting lost revenue. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management concurs with finding and in future will get clarification from FORVIS regarding this type reporting to make sure it is done correctly.